Best in business: Top 10 most-read stories on beauty business developments of 2022

By Amanda Lim

- Last updated on GMT

We recap our top stories on the beauty business, featuring some of the biggest names in beauty such as Amorepacific, Coty, L’Oréal and more. [Getty Images]
We recap our top stories on the beauty business, featuring some of the biggest names in beauty such as Amorepacific, Coty, L’Oréal and more. [Getty Images]

Related tags Business Personal care Skin care Cosmetics Personal care products

In this 2022 round-up, we recap our top stories on the beauty business, featuring some of the biggest names in beauty such as Amorepacific, Coty, L’Oréal and more.

Kao highlights need for ‘dramatic’ change to invigorate hair care business

Kao Corporation has underlined the immediate need to revitalise its declining hair care business amid stiff competition in the mass market sector.

The firm faces stiff competition in this sector as there are many brands, even ones from smaller companies, flooding the market.

As such, it would take “unprecedented initiatives”,​ such as introducing the global brands in its portfolio into the domestic market.

Estée Lauder outlines six-month strategy to recoup market share loss in China

The Estée Lauder Companies has put in place a six-month plan to recover the market share it has lost in China due to the COVID-19 pandemic disruptions that occurred in the first half of 2022.

The company plans to recover the lost market share in China over the next six months.

First, it will focus on its premium hair care brand Aveda, which launched in China just last month on Tmall and unveiled its first freestanding store.

Yatsen set to shutter more Perfect Diary offline store in H2 this year

Yatsen Holdings has announced its intention to close more underperforming Perfect Diary brick-and-mortar stores considering the worsening retail environment in China.

Since the start of the year, Yatsen had shuttered 58 Perfect Diary stores. As of June 2022, the company still operated a total of 228 brick-and-mortar stores.

Speaking during the firm’s second-quarter earnings conference on August 25, CEO Huang Jinfeng said the firm was not done closing down more Perfect Diary outlets

The next frontier? K-beauty companies shifting focus toward the US for growth

South Korean cosmetic companies Amorepacific and LG Household & Healthcare (LG H&H) are turning their gaze westwards to the US for new opportunities as growth prospects in China dampen.

It is no secret that China’s zero-COVID policies have placed a damper on many businesses worldwide. The severe restrictions imposed by authorities have had a ripple effect on the cosmetic industry.

While companies are expecting performance to improve with the easing of restrictions – and some have already seen recovery – there are still some lingering concerns.

Against this environment, those who have relied heavily on the Chinese market in the past are looking to diversify their focus to other markets, including South Korean cosmetic titans Amorepacific and LG H&H.

Why China Documents deal represents strategy change for L’Oréal

The addition of a high-end homegrown C-beauty brand with a Gen Z following to its portfolio is precisely what L’Oréal needs to stay at the top of its game in the Asian market.

Although L’Oréal has been present in the Chinese market since 1997 and acquired several Chinese brands in that time, the purchase of a Documents stake marked Shanghai Meicifang’s first deal since it was established as the group’s China investment fund in May.

Documents has the advantage of its own retail presence, with plans to expand to between 30 and 40 stores in the next five years, according to Rooke. The store is unconventional, providing an immersive experience.

Kao to discontinue or divest another 13 of its beauty brands by 2024

Kao is mulling over the decision to discontinue or divest another 13 of its beauty brands by 2024 amid warnings that the impact of the pandemic will continue to be felt across the12 months.

The company expects the impact of the pandemic to persist this year and has decided to focus investments on a select group of brands and products moving forward.

The company had decided to discontinue or divest 28 brands to focus on its core G11 and R8 brands.

It had already axed 15 brands and the next 13 will be discontinued or divested by 2024.

Amorepacific highlights three strategies to drive growth in 2022

Amorepacific is taking a three-pronged approach for growth in 2022, including strengthening its branding and digital efforts, while also restructuring the business.

First, the firm would focus on its brand building and expand into potential sectors of growth, such as derma beauty and wellness.

At the same time, the company was planning to deepen its digital transformation as a means to reach millennials and Generation Z consumers.

Lastly, the company sees the need to restructure the business moving forward.

Doubling down in China: Coty aiming to more than double sales over the next three years

US beauty major Coty is aiming to more than double its sales in China by tapping into opportunities with prestige beauty and e-commerce.

Compared to its rivals, the firm behind Covergirl and Max Factor is relatively new in China, only establishing a subsidiary in 2016. Today, China only accounts for 4% of Coty’s total revenue.

Although Coty has been around since 1904, I remind you that we are still young in China,”​ said Guilhem Souche, managing director of Coty China.

In the last fiscal year, total sales in China increased by 31% and in the first quarter of the 2022 fiscal year, China saw growth of nearly 50%.

 

K-beauty brand Dear Dahlia eyeing major expansion in the Middle East to capture luxury beauty opportunities

Luxury vegan beauty brand Dear Dahlia from South Korea is set on expanding its presence in the Middle East, with new markets including Egypt, Kuwait, and Bahrain on the cards for this year.

The brand partnered with luxury beauty retailer FACES, which operates around 70 stores in eight markets in the region, including United Arab Emirates (UAE), Kuwait, and Saudi Arabia.

By the end of the first half of this year, the brand expects to be available in 36 stores. The second half of the year will be dedicated to expanding its presence to more markets to solidify its position in the Middle East.

Watsons reveals strategy for success in ‘vibrant’ Middle East skin care category

Health and beauty retailer Watsons says positioning itself as a ‘skin care expert’ is key to achieving success in the Middle East market.

The company is laying the groundwork to position itself as the “skin expert” ​for beauty enthusiasts in the region.

“The Middle East has a huge potential health and beauty market with skin care category being one of the fastest-growing beauty categories. Before Watsons’ entry into the market, there was no health and beauty retailer with the breadth of skin care expertise that we can offer,” ​said Jonathan Watts, General Manager of Watsons GCC.

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